University System of MarylandOffice of Internal Audit

Control Self Assessment Guide

Table of Contents

  • Accounts Payable/Cash Disbursements*
  • Procurement of Goods and Services and Other Disbursements*
  • Procurement of Major Repair and New Facility Construction*
  • Accounts Receivable*
  • Cash*
  • Checking Accounts*
  • Ethics**
  • Grant Administration*
  • Information Technology
  • Inventory/Fixed Assets*
  • Loss Management*
  • Payroll*
  • Human Resources*
  • Petty Cash*
  • PurchasingCards
  • Travel*

Source:*Comptroller of Maryland-Internal Control Manual For use by State Departments and Independent Agencies.

**The conflict of interest provisions of Maryland State Ethics Law: Annotated Code of Maryland, Title 15, and Subtitle 5.

University System of MarylandOffice of Internal Audit

Control Self Assessment (CSA) Checklist

Accounts Payable/Cash Disbursements*

(return toTable of Contents)

Prepared by:Date:

Reviewed by:Date:

Control Objective:To ensure that accounts payable are supported by appropriate documentation, are promptly paid, and properly recorded.

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Are requisitions completed by requestors and submitted to Purchasing department?

  1. Are invoices checked against purchase orders and receiving reports for terms, prices, and quantities?

  1. Are invoices checked to be sure only original invoices are processed for payment? Is the duplicate payment report reviewed and appropriate follow-up performed?

  1. Are records maintained and reviewed of goods returned and claims made?

  1. Are regular comparison made of invoices from vendors with recorded accounts payable?

  1. Are encumbered funds that are no longer needed promptly cancelled?

  1. Are up to date approved signature cards for authorizing disbursements on file with the Comptroller’s Office?

  1. When a transmittal is prepared, is the information on the vendor number table compared with the invoice to ensure that the correct vendor is being paid, the address is current and the Federal Identification Number on the table is correct?

  1. Are all payments made using the vendor data table?

  1. Do procedures ensure that all payments are sent to the Comptroller’s Office for payment within USM Policy time requirements?

  1. Are all payments approved only by authorized personnel who review supporting documentation at least on a test basis?

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Is a periodic review of the report for undeliverable checks and cancelled checks made by someone independent of the payment process?
Is appropriate follow-up performed to:
a) Re-mail returned checks?
b) Correct the Vendor Table?
  1. Is a periodic review of the report for unpresented checks made by someone independent of the transmittal process?
And, is appropriate follow-up performed and documented?
  1. Is vendor maintenance performed by someone other than the person responsible for making payment?

  1. Are applicable vendors identified for 1099 reporting?

SOURCE: * Comptroller of Maryland-Internal Control Manual for use by State Departments and Independent Agencies.

University System of MarylandOffice of Internal Audit

Control Self Assessment (CSA) Checklist

Accounts Receivable*

(return to Table of Contents)

Prepared by:Date:

Reviewed by:Date:

Control Objective:All valid accounts receivable transactions, and only those transactions, should be recorded as accounts receivable.

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Are the accounts receivable ledgers maintained by employees who do not handle cash receipts or cash receipts records?

  1. Are the accounts receivable reconciled at least monthly to the general ledger control account?

  1. Are adequate credit and collection procedures in effect?

  1. Are the accounts aged regularly?
If so, does an authorized executive review them?
  1. Are statements remitted for all accounts?
Are they sent by an employee who has no access to cash and is independent of all accounts receivable personnel?
  1. Do controls exist over billings to ensure that unauthorized credits are not made?

  1. Are billing disputes promptly investigated by a person not involved in the billing area?

  1. Are material delinquent accounts periodically subject to review by an official other than the accounts receivable representative?
Is notification of delinquency provided in accordance with state
policy?
  1. Are procedures in place to assure that write-offs are sent to the Central Collection Unit of the Department of Budget and Fiscal Planning Management in a timely manner?

  1. Does a responsible official approve credit memos?

  1. Are credits accounted for?

  1. Are credit balances reviewed periodically?

  1. Is the cashier denied access to the accounts receivable ledgers?

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Are Allowances for Doubtful Accounts recorded?

  1. Is reconciliation between subsidiary A/R ledger and the G/L performed?

  1. Is there a comparison and analysis of earned vs. budgeted revenue?

  1. Are procedures in place to prevent students with prior semester balances from registering?

  1. Are financial aid disbursements made timely (i.e.: credits posted to student accounts)?

  1. Are financial aid draw downs made timely and performed by someone independent of the accounts?

  1. Are deferred payment plans offered to students who are not meeting payments?

SOURCE: * Comptroller of Maryland-Internal Control Manual for use by State Departments and Independent Agencies.

University System of MarylandOffice of Internal Audit

Control Self Assessment (CSA) Checklist

Cash*

(return to Table of Contents)

Prepared by:Date:

Reviewed by:Date:

Control Objective:To ensure that the receipt, deposit, and recording of cash are adequately controlled.

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Does your institution have written instructions for cash handling activities?

  1. Does a listing exist of all mail, over-the-counter, checking account and imprest fund amounts locations?

  1. Does a listing exist of those individuals authorized to handle cash at each of the locations?

  1. Is someone assigned responsibility to periodically review cash handling activities within the institution and to update procedures and listings?

  1. Are the responsibilities for collecting receipts and preparing deposits segregated from those for recording cash receipts and general ledger entries?

  1. Is the responsibility for cash receipts segregated from those for cash disbursements?

  1. Is the responsibility for preparing and approving bank account reconciliations segregated from the responsibilities for cash receipts or cash disbursements?

  1. Do those responsible for opening the mail make listings of mail receipts?

  1. Are checks restrictively endorsed “For Deposit Only” immediately upon receipt?

  1. Are records made of over the counter receipts by those responsible for point of sales activities? (i.e., are pre-numbered receipt forms, pre-numbered tickets, cash register records or some other controlled forms used to record over the counter receipts?)

  1. Are pre-numbered receipt forms and tickets accounted for?

  1. Are perpetual inventory records maintained for all pre-numbered forms?

CSA Checklist Step / Yes / No / N/A / Remarks
  1. If a cashiering system is used, are machine readings printed at the beginning and end of a shift?

  1. Is cash counted at the end of each shift by a cashier and supervisor?

  1. Are cash collections agreed to machine readings and discrepancies reported and investigated?

  1. Is a deposit slip prepared and compared to the deposit?

  1. Is a monthly reconciliation of cash performed and reviewed by management?

  1. Does each employee responsible for collections have a separate cash drawer and is individual accountability maintained?

  1. Are cash register cumulative control totals or other types of controlled forms (such as pre-numbered receipts forms or tickets) reconciled with collections on a daily basis?

  1. Do supervisory personnel approve voided transactions and credit transactions?

  1. Do adequate physical facilities exist to safeguard and store receipts?

  1. Are receipts deposited daily or, at a minimum, weekly or when $500 is accumulated?

  1. Does a person, who doesn’t collect, record or deposit receipts, reconcile those receipts with validated bank deposit tickets to ensure that receipts are deposited intact?
Are all differences fully investigated?
  1. Are collections deposited intact?

  1. Do procedures exist to ensure that overpayments are subsequently refunded and underpayments collected?

  1. Are cash receipts from separate collection locations reported to the General Accounting Division on a timely basis?

  1. Are all employees who handle cash adequately bonded?

  1. Is it cost effective for the receipts to be processed directly by the institution, rather than by financial institutions’ lock box system?
Is the receipt collection activity as centralized as possible?
  1. Are payers instructed to make checks payable to the State of Maryland or the educational institution?

  1. Are dishonored checks adequately controlled and collected promptly?

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Are persons responsible for processing or recording cash receipts prohibited from receiving returned checks?

  1. Are trends in receivables developed and examined by management?

  1. Are periodic surprise cash counts performed by someone other the fund custodian?

SOURCE: * Comptroller of Maryland-Internal Control Manual for use by State Departments and Independent Agencies.

University System of MarylandOffice of Internal Audit

Control Self Assessment (CSA) Checklist

Checking Accounts*

(return to Table of Contents)

Prepared by:Date:

Reviewed by:Date:

Control Objective:To ensure that controls exits over issuance, collection, deposit and reconciling of checks and their corresponding accounts.

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Are all checking accounts which your institution uses approved by the Comptroller’s Office and Treasurer’s Office?

  1. Are the accounts adequately collateralized?

  1. Are checks restrictively endorsed “For Deposit Only” immediately upon receipt?

  1. Are receipts recorded immediately?

  1. Does a person who does not collect, record or deposit receipts reconcile those receipts with validated bank deposit tickets to ensure that receipts are deposited intact?

  1. Are officials prohibited from signing blank checks?

  1. When a facsimile plate is used, is the plate removed from the check signing machine and safeguarded when the machine is not in use?

  1. Are all receipts and expenditures recorded accurately and promptly in a general ledger account?

  1. Do persons who sign the checks review supporting documents when they sign to determine if the justification is adequate and if the expenditure is consistent with the authorized purpose of the account?

  1. Is an employee other than the custodian responsible for reviewing the documentation supporting the checks and placing the signature on the checks?

  1. Is the check signer precluded from signing checks payable to him/her self or to cash?

  1. Are the checks pre-numbered?
And, are check numbers (blank checks) periodically accounted for?
CSA Checklist Step / Yes / No / N/A / Remarks
  1. Are all checks dated and recorded when prepared?

  1. Are dollar limits established for amounts that can be paid out of the checking account?

  1. Are procedures in effect to ensure that authorized checks are not returned to the preparer for mailing?

  1. Are personnel restricted from using the fund for unintended purposes (e.g., loans)?

  1. Are work related advances reimbursed to the fund on a timely basis?

  1. Are the un-issued checks adequately safeguarded against theft or misuse?

  1. Are the voided checks adequately cancelled to preclude negotiability and maintained on file?

  1. Are outstanding checks reviewed monthly for propriety?

  1. Is each bank account reconciled and a fund composition prepared on a monthly basis by someone other than the persons responsible for receiving, depositing and disbursing funds from the account?

  1. Are significant reconciling items (e.g. advances) verified on a test basis?

  1. Are all differences fully investigated and are supervisory personnel advised of all unresolved differences?

  1. Do supervisory personnel review and approve the monthly compositions and reconciliations?

SOURCE: * Comptroller of Maryland-Internal Control Manual for use by State Departments and Independent Agencies.

University System of MarylandOffice of Internal Audit

Control Self Assessment (CSA) Checklist

Ethics**

(return to Table of Contents)

Prepared by:Date:

Reviewed by:Date:

Control Objective:The term conflict of interest denotes situations in which members of the University community are in a position to gain financial advantage or personal benefit arising from their University positions, whether through outside professional activities or through their research, administrative, or educational actions or decisions at the University. Sometimes these conflicts can be managed, and sometimes they must be avoided, but they must always be recognized and acted upon.

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Have personnel been instructed to become familiar with the policy on Conflict of Interest?

  1. Have personnel been instructed to become familiar with the policy on Professional Conduct?

  1. Have personnel been instructed to become familiar with the policy on Code of Conduct for Officers and Senior Administrators?

  1. Are personnel familiar with the policy on reporting known and suspected fraud?

  1. Have personnel been instructed to become familiar with the policy on sexual harassment?

  1. Are personnel familiar with the policy on confidential information?

  1. Are personnel familiar with the policy on employment of family members?

SOURCE: **The conflict of interest provisions of Maryland State Ethics Law: Annotated Code of Maryland, Title 15, and Subtitle 5.

University System of MarylandOffice of Internal Audit

Control Self Assessment (CSA) Checklist

Grant Administration*

(return to Table of Contents)

Prepared by:Date:

Reviewed by:Date:

Control Objective:Administer grants with sufficient controls and reviews to minimize potential irregularities which could create a significant liability to the grantor.

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Is a specific individual or department assigned to oversee compliance with the major terms and conditions of each grant received by the institution?

  1. Do formal, written procedures exist to help personnel adhere to Federal Grant guidelines?

  1. Are all grant applications processed with assistance of the Grants and Finance Office?
Are Registrations with Central Contractor Registration (CCR) controlled and monitored by the Grants and Finance Office?
  1. If the amount of a grant is based on economic conditions, enrollment statistics, population statistics or other pertinent data, is reliable data produced to support the information?

  1. Are program participants screened on a case by case basis to document eligibility for grants with eligibility criteria?

  1. Are necessary pre approvals obtained by grantor agencies?

  1. Are proposed budgets of sub grantees and proposed grant expenditures of your institution reviewed in advance for compliance with:
the generated grant requirements of OMB Circular A-133;
the terms and conditions of individual grants; and
the cost reimbursement provisions of OMB Circular A-87?
  1. Is there an indirect cost recovery plan prepared each year?
Are amounts received as reimbursement of statewide indirect costs reverted to the General Fund or has an exemption been granted?
  1. Are sufficient local funds earmarked for grants which have cash matching requirements?

  1. Are adequate records established to accumulate and value in-kind contributions for grants which have in-kind matching provisions?

CSA Checklist Step / Yes / No / N/A / Remarks
  1. Are procedures in place to assure proper cash management of Federal funds?

  1. When funds are sub-granted or subcontracted to others, are the activities of the sub-grantees or subcontractors monitored frequently enough to provide a reasonable assurance of their compliance with grant requirements, matching provisions and expenditure restrictions?

  1. Is there adequate support for billings and financial status reports sent to the federal government?

  1. Are billings and financial status reports made timely and in accordance with grant provisions?

  1. Are Single Audit reports collected from all appropriate local subdivisions to which money is sub-granted and reviewed for follow-up on any applicable comments?

  1. Is the grant fiscal report filed with federal agencies prepared from or reconcilable to the States financial records?

  1. Are federal funds reported/reconciled properly in R*Stars on a monthly basis?

  1. Are federal fund draw downs done at least on a monthly basis?

  1. Is the detailed grant schedule which must be submitted to the Comptroller’s Office reconciled to R*Stars and submitted on a timely basis?

SOURCE: * Comptroller of Maryland-Internal Control Manual for use by State Departments and Independent Agencies.

University System of MarylandOffice of Internal Audit

Control Self Assessment (CSA) Checklist

Human Resources*

(return to Table of Contents)

Prepared by:Date:

Reviewed by:Date:

Control Objective:To determine that documentation supports the hiring and exit of employees.

CSA Checklist Step / Yes / No / N/A / Remarks
  1. When education, experience and or credentials are essential to hiring or promoting decisions, are original or certified copies of appropriate documents and reference checks obtained before selecting an individual?

  1. Are criminal background investigations requested for individuals selected for a position of trust prior to their actual hiring or promotion?

  1. Are offer letters or contracts written and signed with hiring terms?

  1. Are benefits reviewed and selected at least two weeks prior to the employees start date?

  1. Are exit checklist completed and maintained in employees file?

SOURCE: * Comptroller of Maryland-Internal Control Manual for use by State Departments and Independent Agencies.

University System of MarylandOffice of Internal Audit

Control Self Assessment (CSA) Checklist

Information Technology

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Prepared by:N/ADate:N/A

Reviewed by:N/ADate:N/A

Control Objective:N/A

CSA Checklist Step / Yes / No / N/A / Remarks
Not applicable – see IT EXCLUSION comments below. / --- / --- / --- / ---

IT EXCLUSION: The IT portion of this questionnaire was omitted since institutions are currently providing similar, but more complete self assessments of their IT control environment. The repository for this information is the required “Information Technology Security Program Status Report.” Thereport issigned-off by the institution’sCIO and is subsequently reviewed and approved by the USM CIO. The approved report is submitted yearly to the Department of Management and Budget.